could anyone have seen into thosemean girlminds before two families paid the price? that's all for this edition of dateline. i'm natalie morales. thank you for watching. ♪ good morning and welcome to "street signs. i'm joumanna bercetche. >> and i'm julianna tatelbaum. these are your headlines. march's inflation print surprises to the upside, keeping pressure on the bank of england. heineken's hosts a first quarter revenue beat while brew falls flat falling apart from

the americas. shipper asml's stock slides as demand exceeds capacity. a plot twist in after hours for netflix after the streaming giant post a beat on eps but misses on revenue. co-ceo greg peters outlines the delays to the crackdown on password sharing >> this is an important transition for us. we're working hard to do it well and as promptly as we can. we see an initial cancel reaction, and then we build out of that. well, global markets have been dipping south over the last 24 hours we heard from wall street. we had quite a negative close from goldman sachs after reported earnings missed the mark, sending the stock about 2% lower, 1.7% by the end of the

day. johnson & johnson also another drag on wall street. this transpired into a negative session for asia as well you can see on the heat map behind me in europe, a lot of red on the map the stock is down 0.2% here we focus on the beginning of earning season, some of the company's data is beginning to come out we'll get to that shortly as well as inflation data out of the uk let's turn to the european markets and see the reaction the ftse 100, down 0.3%. potts, still 10% it's interesting to see how sticky it is the markets are pricing in almost at full possibility of a 25 basis-point hike at the next meeting given yesterday's meeting and today's cpi

inflation surprising to the upside xetra and dax trading down 0.2%. asml, the dutch tip technology company came out with earnings today, and even though the earnings were better than expected, we are seeing a bit of a drag on that name. we'll get to that shortly. ftse down 0.8% in terms of sectors, this is the breakdown we have. food and beverages right up at the top of 0.4%, so some strength showing in today and, of course, that is translating to margins that's also one of the reasons why inflation tends to be so sticky because a lot of it is coming from that particular basket, the food and beverage basket short 0.4% and the interest and sector also reacting in line with the yields tech down 1.4%, asml focused in

that basket. this is the picture for currencies today. we sh the dollar trading just shy of 0.1%. the pound goes strength to strength, almost back up, 0.3% on a day when the u.s. dollar more broadly speaking is working quite well also we are seeing a big reaction in gilt today this is the picture for gilt up 3.8%. markets reprise the possibility of a more progressive hiking cycle out of the bank of england. remember the last evening the markets came into view that perhaps they were close to tend. but after today's print, we are seeing investors reassess their expectations 10-year gilts also up 3.8%, moving steadily higher, this as uk's inflation is slightly up,

the first trend since 2022 core inflation was also sticky at 6.2%. well, back stateside, james burard has rejected suggestions of a recession telling reuters warnings were coming from concerns that rates were going up too quickly meanwhile atlanta fed president told cnbc he backs another rate hike. >> there's still a lot of work that's going to go through our policy that's another reason why i think one more move should be enough for us to take a step back and see how our economy is going through the policy to understand how inflation is returning back to our target. turning back to some banking news first quarter profits at goldman sachs slumped with its fixed

trading units and pullback of deal making. there were echoes of similar designs by jpmorgan last week. the retail sector is selling down $1 billion worth of consumer loans and announcing plans to divest green sky. they had acquired the company for $2.2 million a little over one year ago. goldman's results contrast with those of bank of america which reported a 15% rise in first quarter profit after its bond traders saw their best quarter in over a decade revenue was also beat coming in at $23.6 billion, and despite the numbers, the bank announced plans to cut as many as 24,000 positions or about 2% of its overall work force brian moynihan says they plan to

come out quite unscathed. >> the business models that were chanced early in march were very different from the banks -- the regional bank and system and stuff. that's a very good thing for america. >> let's bring in our first gu guest. joumanna is obviously with me in the picture there. great to have you on the show. we were going through a recap of the bank earnings yesterday. more broadly, i came back from the imac meetings last week. i feel that higher interest rates are exposing vulnerabilities in the system. one of them was obviously the situation we saw with u.s. regional banks, many people saying that that now is more or less contained there are some risks to be aware

of looking ahead i just wonder in your view where else we're going to to see hidden vulnerabilities in the system. >> yeah. it's a great question. good morning, everybody. obviously the latest iterations have obviously been alongside other crises we've seen over the course we've seen issues in the gilt market prior to that and other areas where this is leading to issues in the broader marketplace. i think what you're looking to is where rates are rising and in particular if there's leverage in that area on the banking side, clearly things have moved on people think that that's a previous story, but there may be other humps and bumps along the way. other areas would be maybe the knowns/unknowns is the commercial real estate side of things, particularly the exposure of the u.s. to. that you would be watching if

there's a normalization in japanese policy that was sub can tall home and obviously people are beginning to talk about it but we're going to be facing noise around the debt ceiling over the next while. the interesting thing that was in your question is that faced with a choice both the ecb and the fed looking at market volatility versus their desire to tighten inflation and control in both cases chose the desire to tighten i think that gives you a flavor of how they are seeing the challenges from here. >> that makes sense because you look at the bank of england and the incidences, it's sitting at 6 percentage points. it seems presumptuous of them to say our work is done with core inflation sitting at 4% where their target is meant to be. i wonder whether in your view you think we are structurally

infor higher levels of inflation going forward? are these higher numbers going to be with us for a while? >> i think it's one of two things firstly the central banks have said they're going to be data driven this is what data driven feels like you don't have the forward comfort guidance the central banks react to what they see and go accordingly. as you said a few minutes ago, a few weeks ago the bank of england was going to pause, and now due to the strength of the uk economy and wage inflation agreements, you see they're going to have to hike or at least that's the view. with the high level of volatility and the response is the reality coor ross. i think what's certainly the says is with the u.s. in particular and the ucb as well, we are closer to the end of the hiking cycle than we were, and if the banks stop lending because of the recent noise, that's probably going to

expedite that as well. the central banks will be reacting to the data as we see it, and if we get -- at the moment the market is trading kind of a lower growth credit conditions type of environment it wouldn't take much for it to derail again one last idea, even last friday, 434 people in the university of michigan survey, less than 1% of the population, managed to move the bond markets by 0.1. that's what data-driven feels like. >> naill, good morning it's julianna. let me jump in here. when you look at equity markets, which have been really resilient and we're looking at gains, double digit for the nasdaq year to date, given that we've had this banking crisis, we seem to be on the other side of it, something broke, and rates are continuing higher, and yet equities continue to rally what's going to really drive

markets lower here >> so i think when we look at it, we're weary on equities for all the reasons you just laid out. basically we were talking about it yesterday we think you can be paid to be patient. we think you can wait it out retain the optionality to move in the future and pick your points, but unfortunately on the equity side, i think what's effectively being priced in is this lower for longer on the rate side and this idea that you're effectively going to get enough of a recession to cause the fed to act and effectively move interest rates back to that lower for longer environment, but not enough of a recession to cause a material impairment in earnings or something that would cause the equity to rise dramatically when we look at that, we would look at eck question thees from here it may not be a big set piece event but probably a gradual

realization that earnings continue to print just a little bit lower, just a little bit lower, a little bit lower, and a realization that fixed day day income provides return and it didn't before, and that will ultimately lead to a rerating on the evaluation side. >> so our earnings season this time around even more important than usual naill, let's wrap up currencies and inflation here sterling has been on the rise since march. it's been a pretty strong performer since below the 125 level. the euro has also been appreciating how do you think about euro versus pound versus usd? >> i think it's something back to what we referred to earlier it's probably close to the end of the hiking cycle. generally speaking, that's going to provide less of a currency support and therefore we would believe it would underperform those undercurrencies.

the other that's worth looking up in that context is emerging currencies typically when the dollar gets to the end of its hiking cycle, usually that's the time for the hiking psych in this particular case, that's the case when a lot of them have been further along and they manage to get things under control a little more. certainly how we're thinking of it is by adding to the debt with high market currency an low currency as the dollar plays out. >> naill, thanks so much for joining us today great to hear your perspective ceo of neuberger berman. let's get into earnings as naill said heineken posting worse than expected beer sales in the first quarter. it fell by 3% with weakness in almost all of its key markets

apart from the americas, however, the company maintained its growth expectations for the full year and shares were up around 2.8%. in the chip space, asml posted the almost 2.25%, three times higher than a year aechlgt it posted a 90% jump in revenue. there was some uncertainty in its outlook with mixed signals but with orders continuing to outstrip capacity and asml shares are taking a hit, down 2.45%. yesterday nvidia focused stateside, we saw the stock move higher despite the strong rally it had year to date, about 85% year to date it has further to run even though it's been such a top performer, such a strong performer already. that was a positive in the chip space. now the positive news from asml is weighing on the chipmakers

and we've got losses across the european space. in euro eatery, the food firm raised its profit from 275 million euros this year, adding it has made good progress. that stock down 3.9% and it's dragging other food delivery trucks dragging down with it we've got takeawa also going down. netflix declines in after-hours trade. we'll discuss the earnings report coming up next.

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welcome back to the show well, stranger things -- get it -- are happening from netflix shares after the streaming giant reported a mixed set of first quarter results.

julia be julia boorstin breaks down the numbers. >> netflix plummeting by double digits before regaining profits. earnings per share beat expectations by 2 cents but revenue fell short of analysts' expectations that's despite better than expected subscriber growth the streamer added 1.75 million subs rather than the less than 1.4 million analysts had dictated they guided to lower than expected second quarter revenue and earnings than wall street projected. on the upside netflix co-ceos says they're doing well. the tier is above expectations and it's noncannibalizing their streaming. they continue to be pleased across all key dimensions.

they also weighed in on their crackdown on password sharing, announcing plans to launch paid sharing worldwide in the u.s. in second quarter saying delaying the launch will result in a better outcome and better revenue will fall in the third quarter real estate than the second julia boorstin, business news, cnbc, los angeles. >> i guess the initial interpretation for the market was the subscriber numbers were very disappointing, but looking ahead people are comforted by the fact they're placing a lot of focus on margins and what's interesting about netflix, even though their subscriber numbers have been growing, average revenue per user has been dropping they're looking how they can raise the average revenue by adding the ad-tiered model and

by passing down on password sharing. also just to note, ubs ten minutes ago said they have raised the rating on netflix from neutral to buy and they've raised their target prize from 395 to 350. >> not just ebs. in terms of what netflix is doing to try to drive margin improvement, there was a lot of focus on the crackdown of password sharing they're delaying the broader rollout of these new rules around password sharing, including in the u.s., which is obviously netflix's major market from q1 to q2. that does have an impact on revenue earnings for the year. the analysts cut its 2023 revenue estimates due to this delay of broader account sharing initiative, but long term deutsche bank and other bulls on the stock argue that the advertising supported tier is

going to drive growth moving forward and give them a lot more flexibility of pricing and the long-term story is intact here. >> it seems to me similar in line with what we were told with tesla also all of this -- not just tesla, but really any company that's reporting on the season. it's all going to be about margins and what companies are doing to keep those margins elevated or stop them from dwindling as much as markets are anticipating, and in this case it's about the long-term investment if you're looking that far into the future, they're disappointed in having to postpone the password sharing longer term when they doroll it out, it will be a positive for the stock. you'll see that. >> the streamers are interesting. for sure near term the markets are important. then you have this existential

question of how many streamers are going to describe. earlier this morning alex degroote was on. there are currently six major players out there. if you look at that, three are going to have to fall away, and the jury is still out whether netflix will be one of the survivors or will be excluded. it feels like there's short-term questions of uncertainty but longer term, who's going to survive. >> you've got the likes of disney with a deep catalog of existing movies they can draw on so that sets them apart. >> absolutely. >> that was the reaction for netflix. very interesting, i thought, out of the path to go from so negative to actually marginally positive by the end of the day. >> well, that's what earning season does, provides a lot of opportunity. speaking of earnings,

johnson & johnson has asked a judge to stop lawsuits a subsidiary is looking to settle the suits by a bankruptcy court, again, by a previous judge finding the first attempt improper in terms of earnings, j&j shares fell 2% after a net lox following a link to the top lawsuits j&j earnings and revenue did top its guidance for the first quarter with cfo joseph wolk telling cnb doctor nbc t nbc te growth is good. >> we continue to manage our costs and our resources in a very practical and efficient way. >> united airlines reported a

smaller than expected loss in the first quarter and forecast return to profit in the run-out of the peak summer travel season scott kirby played down the slowdown of consumer spending given the broader economic environment. phil lebeau filed this report. >> reporter: shares of united airlines falling that was smaller than expected 10 cents better than the analysts' expectation with the revenue coming in as expected at $11.43 billion the rest of the metric within this first quarter, roughly in line with analysts' expectations as the company says it continues to see very strong demand, and that's reflected in its q2 guidance the company expects to earn between $3.50 and $4 a share, well above the street $359.05. revenue up 14% to 167% united says international demand is growing twice as fast as

domestic demand. there's one more point united is making oday. it's reaffirming its full year earnings guidance between $10 and $12 a share. that's significant because the street going into today was expecting the full year company to come in at 8.62 dlp much more ambitious in terms of what united is expecting and what wall street is expecting. again, smaller than skmectd, losing 63 increments a share phil lebeau, cnbc business news, chicago. coming up on "street signs," double-digit inflations dogging. we'll dig into the numbers after this short break hi. i'm wolfgang puck when i started my online store wolfgang puck home i knew there would be a lot of orders to fill and i wanted them to ship out fast that's why i chose shipstation shipstation helps manage orders

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welcome back to "street signs. i'm julianna tatelbaum. >> and i'm joumanna bercetche and these are your headlines. >> keeping pressure on the bank of england. >> heineken toasts its first

quarter results as they hail the company's price management amid inflation across the region. shares in equipment maker slide amid concerns over weaker bookings saying demand still exceeds capacity this year. and a plot twist in after hours for netflix as shares rebound in double-digit losses after the streaming giant post as beat but misses on revenue. the k co-ceo highlights the craikdowns. >> it's like a price increase. you see an initial cancel reaction and then we build out of that. we're about an hour and a half into today's trading session and european markets are generally in retreat after gaining ground yesterday the stoxx 600 rose by 0.6% to a

near 14-month high, outperforming wall street. but this morning investors taking a little bit of money off the table as they digest a new round of earnings. heineken in focus. then, of course, state side, the bank earnings continue here's the picture ftse 100 is outperforming down 0.3% we're seeing a little more resilience in the cac 40 which is hovering around the line. now, why is the ftse 100 underperforming? partly because of the strength in sterling. let's take a look at fx markets. we've got uk inflation firmly in focus today, surprising to the upside as we noted in the headline right now we've got sterling up a quarter of a percent versus the greenback with markets indicating 1hub% that the bank hikes by 25 basis points at its next meeting yesterday we were prizing in about an 82% chance of that. now, looking at uk gilts,

keeping with the uk story and the reaction to the inflation data, we've got yields higher across the gilt curve. the 10-year guilt curve is trading with 3.8%. outside of the curve, 3.81%. >> we also got some housing price data through 5.5% in january versus 6.5%. a moderation in the increase on annual house prices in the uk no doubt as higher interest rates start to get factored in to the housing market but let's go back to what we were saying about inflation because the headline number is slightly to 10.1% in march, higher than forecast and dashing hopes for the first sub 10% since august 2022. core inflation was also sticky at 6.2 percentage points arabile gumede has more with a special guest. food prices have risen at their

fastest pace in 45 years >> yeah, joumanna. look, it certainly is a figure i think we'll look at and really realize perhaps it is the start, but who knows if it really is because we've had sort of this knee-jerk reaction with regard to that inflation print drive. let's get out to this interview. i'm lucky enough to be joined by the cio at ravens cross. thanks so much for the time. i suppose the bank of england won't necessarily be happy about it, but is this still part of the drop-down we'll be anticipating when it comes to inflation this year? >> yeah, it is inflation is falling that's good news, but not falling as quickly as we had hoped. the bank will take a little bit of comfort from the fact that core services inflation is falling.

kbe're seeing the impact already happening. that should come through in the next few months. today's numbers are about the volatile food sector, and i think food inflation will fall quite rapidly over the next few months if you look at core producer prices, commodity prices, sheing costs all of those things imply that food inflation should fall quite sharply over the next few months and maybe that will lead to a much better number in april. >> what's keeping that food inflation price sticky at the top. when i say sticky, really, really high. 19.1% compared to the 18% we had in the february data it's really hitting hard. >> yeah, well, i think the uk is a major importer of food, of course some of it is a reaction that sterling's been weak up until the last few months,sterling's been weak. that's a factor. there are all sorts of causes like shortage of food in africa, poor harvest and things like

that i think the bank of england won't be too concerned about that of course, they will in the sense it hurts the everyday consumer, but they will expect food prices. the indicators are the same and the food prices are going to drop quite sharply over the next few months that will be a factor in the deliberations when they come and sit down. >> have we seen the energy prices drop off in these numbers? e whole sale gas prices are now at levels we hadn't seen even before the war in ukraine. have we gotten to a point where we've seen the worst of those numbers and now that drop-off is fully sort of priced into the inflation number, for example? >> i think we've seen the most of it. i don't think we've seen all of it we'll see another big drop in fuel prices coming through in april with some of the forecasts in april suggesting that cpi might be down as low as 8, 8.5 i think there's a little more to come through from energy as well i think the bank of england, you

know, they will take some comfort with some of the underlying trends. more importantly, they need to factor in the fact the lack of the tightening, the fact that we don't yet know whether there's more to come from the credit crunches as a result of some of the banking, banking problems. consumption is likely to fall from here on end as the economy goes into a mild recession a lot for the bank to think about. >> you speak about that. sterling is stronger a little bit today as well. it's about a quarter of a percent as well. today you have growth, yes, slightly better, but milder recession. but overall the bank of england now seemingly the estimates are you may actually definitely get a hike of around 25 basis points would they have preferred to keep things as they are right now, that 4.25%? >> i think they probably would, but at the end of the day, it's

a bit of a double-edged sword for them i think they won't see inflation down clearly, but i think they themselves expect it to come down quite sharply, and i don't think anything we're seeing will change that view at the same time they realize in order to get the inflation down, they need to reduce the demand and see a slack in the employment market. but equally they don't want the market to go into too tough of a deployment i think a balance of the margin of recession which allows inflation to thaw down over the course of the next 9 to 12 months without them having to hike rates much more aggressively is not a bad outcome for them. >> the jobs market is still very significant as you made note of, too, right >> no, the job market is very strong and that's part of aging demographics, shrinking work force, and everything everywhere as well. the bank will take comfort in

that vacancies are rising, there's modest downturn in growth, the participation in the labor force is improving again, i think the bank will take that into account and will look forward and i think they'll take some comfort from the fact that the employment market does seem to suffer, which is likely to take pressure after wage growth over the next few months. >> you think there's a massive drop-down. >> i think the bank of england expects it to happen we can look to inflation being back to 2.5%, 3%. >> bold predictions. kevin boscher, cio at ravenskroft. things are starting to bustle up but that number, 10.1%, the headline inflation figure. 6.2% figure for the core inflation, guys. >> let's hope your guess is right that the inflation rate

starts dropping, hopefully to 2% no one will be happier than the bank of england. ubs has upgraded its growth for china, raising expectations to 7.5% on an annual basis jpmorgan and citi also upgraded their margins of 4.5%. >> now, away from the macro, fox news has agreed to pay $787.5 million to settle the dominion voting lawsuit the settlement happened moments before the trial was to begin. nbc's brie jackson filed this report. >> reporter: a settlement reached in the legal fight between dominion voting systems and media giant fox news the two sides agrees on a historic amount. >> today's settlement of $787.5

million represents vindication and accountability lies have consequences. >> reporter: in its defamation lawsuit, dominion alleged that fox knowingly aired false claims spread by supporters of former president donald trump, claiming dominion vote machines for his 2020 presidential election loss. >> fox and dominion have reached a historic settlement. fox has admitted to tilling lies about dominion that caused enormous damage to my company, our employees, and the customers that we serve. >> reporter: the case was resolved even before opening arguments were made. legal experts say the implications could go even further than just fox news. >> one concern is will that lead to a lot more surts against media entities and more so-called looking under the hood of the journalistic process. >> reporter: dominion says its

legal battles are not over. >> money is accountability and we got that today from fox, but we're not done yet. >> reporter: in a statement fox says we acknowledge the court's rulings, finding certain claims about dominion to be false in today's settlement of more than $787 million is about half of the $1.6 billion that dominion's lawsuit demanded. in washington, brie jackson, nbc news coming up on "street signs," mixed fortunes for the big bangs. we'll take you to the earnings right after this. just before we go, let's take a look at u.s. futures which are negative we've tt dow jones looking to open in triple digits, lower by about 13 points or so after a muted session yesterday. we'll be right back. hi. i'm shannon storms bador. when we started selling my health products online our shipping process was painfully slow. then we found shipstation. now we're shipping out orders 5 times faster

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first quarter of goldman sachs slumped 18% by a pullback in deal making investment banking fell 26% from a year ago echoing similar

declines by jpmorgan and citi last week. bank of america reported a 15% rise in first quarter profit after its bond trader saw its best quarter in over a decade. >> bank of america posted a revenue and earnings per share beat revenue grew at a faster rate than expenses throughout the quarter. provision for losses is money put away for future expenses bank of america's number was $931 million in q1, which is actually down from q4. deposits did fall 1.6% quarter over quarter the cfo said they saw, quote, pretty good deposit gathering at the end of the quarter despite the silicon bank fallout we had in mid-march as we zoom out, deposits are still higher than prepandemic levels brian moynihan weighed in saying, quote, the signs of inflation are tipping down and it's still there, but that

translated into relatively good activity, so we see a slight reaction shares reacts positively to the news whereas goldman sachs pointed to a revenue miss, a segment that normally stand ts out for the bank and stood out for banks in another quarter. that off-loaded some of its consumer banking loans and that helping with shares that beat estimates. it also helped soften the blows, but shares traded lower on the news overall with the banks we're seeing a few trends, better than expected net income, despite the low, they're rising to sky levels, and, lastly, we're still se seeing stability in deposits. later today we look at numbers from morgan stanley and regional bank, citizens financial and u.s. bancorp due

before the bell. we're joined by our guest now. michael, thank you for being with us. fairly divergent pictures in share price reactions. my question to you is in this current environmental of higher rates, do you want to be looking at banks with bigger commercial businesses like bank of america or investment banks like goldman sachs given that it's pretty week and yesterday goldman did >> i think geld man is being criticized along fairly. if you look at it, they're generating fixed income of $4 billion. you have to keep in mind comparing is a difficult one goldman knocked it out of the park a year ago. you've got to keep in mind larger banks are reporting in this type of environment

definitely surprised the upsigh. especially on the revenue side jpmorgan increased their outlook by 8%. all in all i would characterize bank earnings as a home run. >> pretty strong review, especially for goldman so if you think that goldman is being treated unfairly, what do you make of the whole marcus debacle? this is goldman's foray into the platform it's making losses, and you have the ceo david solomon saying markets is cannibalizing or being cannibalized by the apple platform that goldman is a part of what's gone wrong there? >> goldman is just narrowing their focus as they stated at their investor day they may keep some of their businesses, but obviously they're looking elsewhere. you've got to keep in mind the consumer business, which is a little bit surprising given their legacy, it was a small piece of the overall pie

they've narrowed their focus their big area is asset and wealth management, which continues to show good trends. so, again, at the end of the day, double digit return on equity in this type of a market we view favorably especially from a creditor's perspective. >> michael, a month ago the markets were focused on the trajectory of the smaller banks versus the larger institutions, and we're getting first readingsle what are some of your takeaways out of the regional banks that have reported so far >> well, large regional banks that have reported they've done well, if you look at western alliance bank based in phoenix, arizona, they reported after the bell, better than expected earnings their stock was up 15% their deposits have grown 2.9 billion since march 20th, so it's obviously a good sign it could bode well for the rest

of that mid-sized peer group it's stabilized supported by swift and decisive acts by bank regulators. >> you say the deposit outflows have stabilized. that's obviously concerning. we've heard jpmorgan talk earlier this week how the positive influence has grown from other institutions, but generally speaking, the theme for u.s. banks has been deposit outflows away from the banking system into money market funds how big of an issue is that going to be going forward? >> i think it's normalization. if you go back to prefinancial crisis, the percentage of noninterest-bearing deposits, that number got as high as 40% at some institutions it's just a remixing the deposit balances, everyone's expect it to come down especially during the covid.

you have quantitative tightening going on decline in dpoos dpos it deposio go on. again, not a surprise. >> what does that do to the net income outlook going forward because if all of a sudden there is this wave of -- a gradual reduction of bank deposits, are banks going to feel the heat and start to get more competitive on the rate they're paying on these deposits >> certainly costs will go up a little bit, but, again, managed income, another strong quarter double digit revenue growth. we think that could eventually subside, but, you know, as i mentioned earlier, jpmorgan increased their outlook by $8 million, so that bodes well for future results in our view. >> michael, lastly on the custodian banks, think state street rattled a lot of investors when their surprised to the downside.

should we be concerns about some ofstate street's peers >> they were fairly solid, so i think state street's reaction is a little worse than expected if you look at these institutions, they look at the deposits during times of distress, so at least from a creditor perspective, not much change in our view and we think they should be fine going forward. >> all right, michael, we'll leave it there thank you so much for joining us on a programming note, "squawk on the street" will be speaking with the chairman and ceo of citizens financial later today after they report earnings that's with bruce van saun coming up at 1630 est. revenue is expected to come in at $3.3 billion for the

electric carmaker. earnings per share is expected to drop sharply. this is a picture of tesla in premarket down about 3.5 percentage points. it was the worst performing stock. we saw a big recovery throughout the course of this year. we spoke a little bit about it with arjun on monday, and i think people are going to be watching out for a couple of things one is delivery, but two is the margin number. they keep cutting prices how is that going to affect price margins? phil lebeau suggested that 20% is what people are watching out for. if it dips below that, we're going to see a diverse reaction. >> to what extent will these price guts have spurred more

demand elon musk as he did a couple of months back ultimately said it's all about affordability. they need to make the cars cheaper. demand is there. consumers just care about price. arjun said to us earlier in the week, price cuts, price cuts, price cuts, that's what it's all about? and increasing competition obviously we're a trail blazer in the ev market you have volkswagen and all these brands ramping up their ev offerings and trying to tap in on the market against china. it's something to watch out for from a competition perspective. >> a number of things to watch as we brace for tesla earnings later on today. as for the futures, we're pretty steady. dow jones still looking at a 112-point drop implied at the moment s&p and nasdaq looking to pull back the nasdaq looking to pull back

65 points. yesterday was a really lackluster day at the index level. very muted obviously divergence across sectors and single stocks, but overall a fairly flat session. >> beige book something to watch out for later today and that tends to give a good idea of how the real economy is evolving central banks in general have been looking a lot at lending activity and sort of the mood on the ground for businesses. that's always a telltale sign how people on the ground are thinking about things as we head to the second half of the year that's it for us on the our show i'm joumanna bercetche. >> i'm julianna tatelbaum. "worldwide exchange" is coming your way next. when we started our business we were paying an arm and a leg for postage. i remember setting up shipstation. one or two clicks and everything was up and running. i was printing out labels and saving money. shipstation saves us so much time. it makes it really easy and seamless.

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it is 5:00 a.m. here at cnbc global headquarters and here are your top "five@5." we begin with futures under pressure as investors deal through quarterly results and bank of america's ceo brian mona hand and consumer spending and the chances of a recession. on the eve of earnings, tesla is slashing prices on two of its most popular models again for the sixth time this year. and talk about a reversal. watching shares of netflix this morning after a mixed earnings report, also marking the end of one of its hallmar